The value of the US dollar has surged in Cuba, setting a new record in the informal market as the week ends. As of Sunday morning, the dollar was being sold at 399 CUP, teetering on the brink of 400 pesos. This marks a two-unit increase from the 397 CUP it reached on Friday. Many forecast that it will continue to rise, potentially narrowing the gap with the European currency soon.
The climb in the dollar's value within Cuba's informal market highlights a significant depreciation of the Cuban peso and a growing lack of faith in the national currency. Key drivers behind this trend include a shortage of foreign currency in official channels, persistent inflation, declining domestic production, and a high demand for dollars for private imports, travel, and savings.
The Economic Impact of Rising Dollar Rates
This escalation directly affects the purchasing power of the Cuban population, increasing the cost of essential goods and services that rely on imports. It also exacerbates economic inequality between those with access to foreign currency and those dependent solely on peso salaries. Meanwhile, the euro has maintained a steady rate of 445 CUP throughout the week.
Current Exchange Rates and Their Consequences
The Freely Convertible Currency (MLC), which has been experiencing instability and continuous declines, stays at 210 CUP as of yesterday. As of 8:00 a.m. on August 10, 2025, in Cuba, the exchange rates are as follows: the dollar (USD) is at 399 CUP, the euro (EUR) at 445 CUP, and the MLC at 210 CUP.
Here are the current equivalents for US Dollar (USD) to Cuban Peso (CUP) based on today’s rates: 1 USD = 399 CUP, 5 USD = 1,995 CUP, 10 USD = 3,990 CUP, 20 USD = 7,980 CUP, 50 USD = 19,950 CUP, 100 USD = 39,900 CUP. For the Euro (EUR) to Cuban Peso (CUP): 1 EUR = 445 CUP, 5 EUR = 2,225 CUP, 10 EUR = 4,450 CUP, 20 EUR = 8,900 CUP, 50 EUR = 22,250 CUP, 100 EUR = 44,500 CUP, 200 EUR = 89,000 CUP, and 500 EUR = 222,500 CUP.
Government Plans and Market Reality
In mid-July, Cuba's Prime Minister, Manuel Marrero Cruz, announced that in the second half of 2025, a new "mechanism for managing, controlling, and allocating foreign currency" will be implemented. This is part of the "Government Program to correct distortions and revitalize the economy." The new model is expected to include a transformation of the official exchange market, consolidation of financing schemes, and a supposedly more efficient redistribution of foreign currency generated by state enterprises.
However, the informal market continues to set the pace: the Cuban peso is losing value, and remittances from emigrants remain the primary support for millions of households across the country.
Understanding Cuba's Currency Crisis
What is causing the dollar to rise in Cuba's informal market?
The rise is driven by a lack of foreign currency in official channels, ongoing inflation, reduced domestic production, and high demand for dollars for imports, travel, and savings.
How does the increase in dollar value affect the Cuban population?
The increase reduces purchasing power, raises the cost of imported goods and services, and widens economic inequality between those with access to foreign currency and those with peso-based incomes.
What are the current exchange rates for USD and EUR in Cuba?
As of August 10, 2025, the exchange rate for the US dollar is 399 CUP, while the euro is 445 CUP.